Posted BY: William Levin
At every level of government in the United States, budgets are out of balance and getting worse. Blue states are worse than red states — big blue cities are worse still.
A close look at New York City, New York state, and the federal government shows the problem is far more perilous than it appears. It is three drunks holding up a lamppost, without the humor.
For the 2023 fiscal year, New York City is projected to collect $73.3 billion in taxes and spend $101.1 billion. How does it close a $27.8 billion gap? The city receives grants from the state ($16.8 billion) and $9.3 billion from the U.S. Treasury. In other words, without largesse, New York City is bankrupt.
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But where does the state get that money? Because, no surprise, it too is bankrupt without federal support — as in, it spends $222 billion, but only collects $135.9 billion. The Treasury — largely funded by red-state conservatives — fills the gap with $89.7 billion.
In total, New York and New York City survive only by receiving federal grants totaling $99 billion annually.